Teva begins to shed manufacturing duties in Israel
In a notification (link in Hebrew) to the Tel Aviv Stock Exchange and first reported by Globes, Rekah disclosed how it had signed a 10-year agreement with Teva to manufacture a number of prescription drugs, OTC products, and hospital incontinence products.
Teva will retain its branding on the products and will continue to fulfil marketing duties over the course of the deal.
Per the agreement, Rekah will have the option to automatically extend the manufacturing of the products for three years.
The manufacturing will be handled by Rekah’s subsidiary, Vitamed Pharmaceutical.
Teva’s manufacturing restructure
Since Kare Shultz was appointed CEO of Teva last year, the company has been open about its plans to rapidly minimise its manufacturing network.
This resulted in the announcement that 20 to 25 sites worldwide would be shut down over through to 2020, including a number within the Israel, where the company is based.
Aside from manufacturing changes, the company has also looked to find other means of making savings across the business – including finding significant tax savings by relocating its US headquarters.
The cost-cutting actions have been required due to the heavy burden of debt the company carries, after a string of acquisitions that culminated in the $40.5bn (€36.5bn) takeover of Actavis, as a slowing generics market in the US placed it under significant pressure.
